THE Government’s scheme to get the property market moving again received mixed views from property experts in the North East.

The Government has pledged £100m support to help first-time buyers to get a foot on the property ladder. Individuals and families with household incomes below £60,000 will be able to join shared equity schemes previously open only to Government workers.

The new rules mean that anyone who fits the income criteria can now join the Homebuy scheme and buy between 25% and 50% of a property’s value.

An initiative was also announced to enable the Housing Corporation to allocate up to £200m to buy new properties on the open market, to be made available for first-time buyers to purchase through the HomeBuy scheme or for social rent.

Gary Anderson, sales director at McInerney Homes building across the North East, welcomed the news in general, but felt it could have come too late

He said: “This is definitely a positive step but I would like to see more of the same. I am hoping that it will help with builders’ housing stock as there are a lot of homes completed but empty.

“The Government is trying to get things moving and you have to applaud that. I hate the expression ‘too little, too late’ and I hope that is not the case.”

McInerney Homes has just launched its own shared equity scheme. The builder is also in talks with a social housing firm to benefit from this latest influx of cash, promised by the Government.

Neil Foster, a director of property agents Foster Maddison, dismissed the schemes as a political move, comparing them to this week’s “giveaway” following the 10p tax row.

He said the global credit squeeze was the key problem and that the briefing papers to the Cabinet inadvertently displayed by housing minister Caroline Flint supported this.

The papers said: “Underlying demand for housing remains high and the fundamentals of the economy are sound. But the market is being affected by the global credit crunch, which is making it difficult for many who would like to buy to do so.”

Mr Foster said: “Buyers are willing but, as a result of the rapidly shrinking mortgage market and persistent scaremongering by many parts of the media, are unable to secure mortgages.

“If the Government would just concentrate on the real issue – improving liquidity in the market for secured lending – then I’m confident that most empty new homes would sell themselves without the need for falsely heroic state intervention.”

The shared ownership scheme means that, for example, a household with an income of £32,000 could afford a house of £200,000, paying £760 each month – as opposed to £1,350 without the scheme.

The buyers would be able to buy a larger share of the property as their income grew. It allows people who would not be able to get a full mortgage to get on the property ladder and protects to some degree against a fall in the market as the loss is halved if 50% is owned. But the gain is also halved if house prices go up.

Caroline Flint said: “Most families aspire to get on to the housing ladder, but are being priced out of the market. We want to give them the support to help them buy an affordable home.”

Stuart Endacott, a senior valuer at property agents Ross Estates, reminded first-time buyers that there are other ways to get through. He said: “I was a first-time buyer myself last year, but I opted to go in with a friend and then got another chap to rent a room from us. I would much rather half own a property with someone I know, rather than the Government.”

Stewart Baseley, executive chair of the Home Builders’ Federation, said the measures did not go far enough for home buyers or the construction industry.

He said: “While welcoming any measures that may boost the housing market, the announcement is not enough. The situation demands drastic action and we have been calling on Government to take a range of measures to address the situation. The implications for the wider economy, industry jobs and the Governments long-term targets of not acting now are severe.”